LUXE — LuxExperience B.V.

Summary of LUXE Q3 2026 Earnings Call

1. Key Financial Results and Metrics

• Group Performance: Achieved a Gross Merchandise Value (GMV) growth of 0.3% at constant currency. Adjusted EBITDA margin improved to 0.9%, marking the second consecutive profitable quarter.
• Net Sales: For the first nine months of FY26, net sales grew by 1.6% at constant currency. Reported net sales for Q3 declined by 5.2% due to currency fluctuations.
• Mytheresa: Net sales grew by 9.9% at constant currency, with a gross margin increase of 240 basis points to 47.1%. Adjusted EBITDA margin rose to 5.5%, up from 3.9% year-over-year.
• NET-A-PORTER and MR PORTER: Combined net sales declined by 5.1% at constant currency, but gross profit margin improved by 700 basis points to 48.5%.
• YOOX: Net sales decreased by 7.4% at constant currency, but gross profit margin increased by 620 basis points to 37.5%. Adjusted EBITDA margin improved from -17.3% to -5.5%.

2. Strategic Updates and Business Highlights

• Transformation Plan: The company is executing a transformation plan focusing on profitability, customer engagement, and operational efficiency. Significant reductions in SG&A costs were noted, with a 12% decrease year-over-year.
• Mytheresa's Success: Continued strong performance driven by a focus on high-value customers and exclusive product launches. The average order value increased by 12.5% to EUR 847.
• Customer Engagement Initiatives: Unique experiences and events for top customers were highlighted, including exclusive launches and high-profile partnerships.
• AI Integration: The company is expanding the use of AI for customer targeting and personalized experiences, enhancing operational efficiency.

3. Forward Guidance and Outlook

• Fiscal Year 2026 Guidance: The company expects to achieve a break-even adjusted EBITDA for the full fiscal year, maintaining a target of EUR 4 billion in net sales and an adjusted EBITDA margin of 7% to 9% in the medium term.
• Market Positioning: LuxExperience is positioned to benefit from the growth of the digital luxury market, with ongoing consolidation within the sector.

4. Bad News, Challenges, or Points of Concern

• Geopolitical Headwinds: The outbreak of war in the Middle East negatively impacted customer sentiment and sales, particularly in the Arabic Peninsula. However, recovery is noted as sentiment has improved since March.
• Declining Sales in Certain Segments: NET-A-PORTER and MR PORTER experienced a decline in net sales due to a strategic focus on higher-value customers and reduced promotions.
• YOOX's Performance: Continued decline in sales raises concerns, although improvements in gross margins and customer satisfaction metrics were noted.

5. Notable Q&A Insights

• Geographic Trends: Strong growth in North America, particularly for Mytheresa, with a noted recovery in Asia. The Middle East remains a concern but is showing signs of recovery.
• Cash Burn: Operating cash burn was better than expected at EUR 118 million, with expectations for a positive cash flow in Q4.
• Customer Dynamics: The average spend per top customer at Mytheresa declined slightly due to an influx of new high-spending customers, but overall customer growth remains strong.
• Promotional Strategy: The company is committed to reducing promotional activities to enhance profitability, with expectations for improved performance in the coming quarters.

Overall, LuxExperience demonstrated resilience in Q3 2026, navigating geopolitical challenges while executing a robust transformation strategy aimed at long-term profitability.